1758.HK WACC - Weighted Average Cost of Capital

The WACC of Bojun Education Company Ltd (1758.HK) is 13.3%.

The Cost of Equity of Bojun Education Company Ltd (1758.HK) is 11.35%.

The Cost of Debt of Bojun Education Company Ltd (1758.HK) is 14.40%.

	Range	Selected
Cost of equity	9.70% - 13.00%	11.35%
Tax rate	5.20% - 7.10%	6.15%
Cost of debt	5.90% - 22.90%	14.40%
WACC	5.9% - 20.7%	13.3%

WACC

1758.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.14	1.31

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	13.00%

Tax rate	5.20%	7.10%
Debt/Equity ratio	14.36	14.36
Cost of debt	5.90%	22.90%

After-tax WACC	5.9%	20.7%


Selected WACC	13.3%

1758.HK's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for 1758.HK:

cost_of_equity (11.35%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.14) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.